NasdaqGS:PRAA

Stock Analysis Report

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Executive Summary

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas, Australia, and Europe. More Details


Snowflake Analysis

Proven track record and slightly overvalued.


Similar Companies

Share Price & News

How has PRA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PRAA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

PRAA

-0.5%

US Consumer Finance

-1.3%

US Market


1 Year Return

14.9%

PRAA

-13.9%

US Consumer Finance

18.5%

US Market

Return vs Industry: PRAA exceeded the US Consumer Finance industry which returned -13.9% over the past year.

Return vs Market: PRAA underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

PRAAIndustryMarket
7 Day1.1%-0.5%-1.3%
30 Day-1.5%8.0%5.3%
90 Day-0.3%11.3%7.5%
1 Year14.9%14.9%-11.9%-13.9%21.3%18.5%
3 Year45.4%45.4%2.1%-3.1%42.4%32.9%
5 Year-28.2%-28.2%24.6%14.3%84.2%63.5%

Price Volatility Vs. Market

How volatile is PRA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PRA Group undervalued compared to its fair value and its price relative to the market?

13.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PRAA ($39.7) is trading above our estimate of fair value ($16.61)

Significantly Below Fair Value: PRAA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PRAA is poor value based on its PE Ratio (13.9x) compared to the US Consumer Finance industry average (10.8x).

PE vs Market: PRAA is good value based on its PE Ratio (13.9x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: PRAA is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PRAA is overvalued based on its PB Ratio (1.6x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is PRA Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRAA's forecast earnings growth (16.9% per year) is above the savings rate (2.2%).

Earnings vs Market: PRAA's earnings (16.9% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: PRAA's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRAA's revenue (7.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: PRAA's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PRAA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PRA Group performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRAA has high quality earnings.

Growing Profit Margin: PRAA's current net profit margins (12.5%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: PRAA's earnings have declined by 14.6% per year over the past 5 years.

Accelerating Growth: PRAA's earnings growth over the past year (119.7%) exceeds its 5-year average (-14.6% per year).

Earnings vs Industry: PRAA earnings growth over the past year (119.7%) exceeded the Consumer Finance industry -32.3%.


Return on Equity

High ROE: PRAA's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is PRA Group's financial position?


Financial Position Analysis

Short Term Liabilities: PRAA's short term assets ($3.5B) exceed its short term liabilities ($253.0M).

Long Term Liabilities: PRAA's short term assets ($3.5B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: PRAA's debt to equity ratio (220%) is considered high.

Reducing Debt: PRAA's debt to equity ratio has increased from 167.9% to 220% over the past 5 years.

Debt Coverage: PRAA's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: PRAA's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

What is PRA Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PRAA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PRAA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PRAA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRAA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRAA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Kevin Stevenson (55 yo)

3.33yrs

Tenure

US$4,716,180

Compensation

Mr. Kevin P. Stevenson co-founded PRA Group, Inc. (Formerly known as Portfolio Recovery Associates, Inc.) in 1996 and has been its President since August 2016 and Chief Executive Officer since June 1, 2017 ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD4.72M) is about average for companies of similar size in the US market ($USD4.48M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Fredrickson
Co-Founder & Non-Executive Chairman18.58yrsno data0.40%
$ 7.2m
Kevin Stevenson
Founder3.33yrsUS$4.72m0.52%
$ 9.3m
Peter Graham
Executive VP & CFO4.17yrsUS$2.07m0.033%
$ 602.9k
Steven Roberts
Executive VP & Global Operations Officer0.67yrUS$2.10m0.099%
$ 1.8m
Christopher Graves
Executive VP of Global Investments & Analytics Officerno dataUS$1.78m0.062%
$ 1.1m
Martin Sjölund
President of PRA Group Europe2.33yrsUS$1.24m0.072%
$ 1.3m
Chris Burroughs
Chief Technology Officer4.5yrsno datano data
Darby Schoenfeld
Vice President of Investor Relationsno datano datano data
Laura White
Executive VP6.5yrsno data0.0060%
$ 108.9k
Christopher Lagow
Executive VP & General Counsel4.75yrsUS$1.21m0.0066%
$ 118.7k
Elizabeth Kersey
Vice President of Communications & Public Policyno datano datano data
Katie Jones
Senior VP & Chief HR Officerno datano datano data

4.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: PRAA's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Fredrickson
Co-Founder & Non-Executive Chairman18.58yrsno data0.40%
$ 7.2m
Kevin Stevenson
Founder3.33yrsUS$4.72m0.52%
$ 9.3m
Scott Tabakin
Independent Director16yrsUS$220.60k0.099%
$ 1.8m
Lance Weaver
Lead Independent Director2.75yrsUS$227.47k0.025%
$ 451.8k
John Fain
Independent Director10.58yrsUS$222.47k0.067%
$ 1.2m
Penelope Kyle
Independent Director15yrsUS$211.85k0.10%
$ 1.9m
Marjorie Connelly
Independent Director2.75yrsUS$226.85k0.013%
$ 244.3k
Vikram Atal
Independent Director5.17yrsUS$220.60k0.026%
$ 473.2k
James Nussle
Independent Director7.33yrsUS$219.35k0.036%
$ 646.4k
Brett Paschke
Independent Director0.25yrno data0.010%
$ 188.6k
Danielle Brown
Independent Director1.75yrsUS$209.97k0.0042%
$ 76.7k

5.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: PRAA's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PRA Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PRA Group, Inc.
  • Ticker: PRAA
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$1.810b
  • Shares outstanding: 45.58m
  • Website: https://www.pragroup.com

Number of Employees


Location

  • PRA Group, Inc.
  • 120 Corporate Boulevard
  • Norfolk
  • Virginia
  • 23502
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRAANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2002
POV1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2002

Biography

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas, Australia, and Europe. It is involved i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:17
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.